WHAT IS BITCOIN:

EVERYTHING YOU NEED TO KNOW

What is bitcoin? How bitcoin works? What is it used for? What impacts bitcoin price? Read this article and discover the most important information you need to know!

What is Bitcoin?

Bitcoin is a virtual currency that offers cheap, quick, and private payments for its users. Bitcoin is the first crypto currency which exists on the market. The crypto currency is also known under the name digital or virtual currency and it is a platform or medium of exchange that utilized cryptography rules to manage the amount of currency and to verify and complete transactions.

You probably are wondering why everyone uses Bitcoins? After all, this is a relatively new trend on the market?

Well, bitcoins are an excellent payment method for today’s virtual age. The bitcoin transactions are free and this automatically makes them a cheaper and more attractive option when compared to credit or debit cards. Also, bitcoins are accepted all over the world and this is one of the reasons why they are perfect for international transactions. Another reason is effectiveness – the bitcoin payments are instant which means that the receiver doesn’t have to wait long for a settlement.

How Does Bitcoin Work?

Each bitcoin is a computer file and this file is stored on a computer or smartphone in a digital wallet. Bitcoins works pretty simply – people can send you Bitcoins directly to your digital wallet and you can send as well. The transactions are recorded in a list which is public and it is known as the blockchain. This list makes it possible to track the history of Bitcoins transactions and to stop users from wasting coins they don’t own, undoing transactions, making copies, and etc.

The blockchain is accessible at any given time to everyone and can be changed or modified with the computing power, as well as, the will of the majority of the network. In other words, you are protected as it is almost impossible to fall victim to a human error or another failure.

The price of Bitcoin is determined by how much people are willing to pay or exchange it for at the moment. In order to process a certain transaction, you need to start a process called mining. Mining includes a computer solving a complicated mathematical problem and the solution is a 64-digit number. When the mathematical problem is solved, one Bitcoin block is processed. In order to compensate for the power of computer chips, the level of difficulty of the problem adapts to make sure a secure and steady stream of new Bitcoins are generated each day. Currently, there are about 16 million Bitcoins.To receive a Bitcoin and complete the transaction, you need to have a Bitcoin address which is a string of letters and numbers (from 27 to 34 letters and numbers) and it is like a virtual post box. There is no register of Bitcoin addresses, meaning users can use them to protect their personality when making a certain transaction.

How is Bitcoin Used?

A number of business companies already accept Bitcoin as a safe form of payment. Some of these companies are Microsoft, WordPress, Wikipedia, Subway, and Virgin Galactic. These companies accept Bitcoin as they have the appropriate infrastructure to meet the needs of cryptocurrency.

In a conclusion, we will say that the value of Bitcoins has gone up and down over the last couple of years, and currently, it is considered as an exciting investment. It is up to you to decide whether you want to be a part of this exciting investment or just sit aside and watch what will happen.